Odisha demands CST compensation on implementation of GST

As new GST regime is likely to be implemented from FY18

The Odisha government on Thursday demanded payment of CST compensation up to 2016-17 year as new GST regime is likely to be implemented from 2017-18 financial year.

"Since GST is likely to be implemented from the year 2017-18, we are demanding payment of CST compensation up to FY17," State Finance Minister Pradeep Kumar Amat told reporters while expressing pleasure over the passage of the Constitution Amendment Bill for GST in the Rajya Sabha on Wednesday (yesterday).

Noting that the efforts of the Empowered Committee of State Finance Ministers have been fruitful, Amat said GST was an important milestone in the reforms of indirect taxes in India and Odisha government is in favour of GST. "It is a consumption-based taxation system," he said.

The GST implementation will bring uniform tax rate throughout the country and will help in seamless movement of goods and services across the states, Amat said.

He said that while the Centre would take steps for enactment of CGST and IGST Act, the states would enact SGST Act.

"Odisha has raised the issue to levy additional non rebatable cess like Green Tax on minerals and other polluting goods sold in course of interstate trade and commerce to compensate the adverse effect of pollution," the finance minister said.

Amat said: "We are also demanding levy of tax on tobacco products by the states over and above the GST as the central government will tax separately as per entry 84 of the Union List of the Constitution."

Noting that the GST Bill was introduced by the UPA government, Leader of Opposition Narasingh Mishra of Congress said the bill could not be passed then as BJP was opposing it.